Wednesday, October 30, 2013

Stop The Social Security Stupidity: A Q&A With Bernie Sanders

Stop The Social Security Stupidity: A Q&A With Bernie Sanders:
No! Social Security is not going broke. According to the Social Security Administration, the Social Security Trust Fund has a surplus today of $2.8 trillion. This sum, plus revenue that comes in every day, can pay out every benefit owed to every eligible American for the next 20 years. In 2033, unless Congress acts, Social Security will be able to pay out only 75 percent of benefits owed. Congress must act and make Social Security strong for the next 50 to 75 years.
Is the Social Security Trust Fund "real," or is it just a pile of IOUs?
The Social Security Trust Fund is very real. Social Security invests the surplus money it receives from workers and employers into U.S. government bonds, the same bonds that China, other foreign countries and wealthy investors have purchased. These bonds are backed by the full faith and credit of the U.S. government. Here is what the Social Security Trust Fund government bond says: "This bond is incontestable in the hands of the Old Age and Survivors Insurance Trust Fund. The bond is supported by the full faith and credit of the United States. And the United States is pledged to the payment of the bond with respect to both principal and interest."
Is Social Security an "entitlement program?"
Has it contributed to our deficit? Social Security is not an "entitlement program. It is an earned income benefit. The revenue from Social Security comes from FICA payroll taxes, payments made by workers and their employers. Currently, workers contribute 6.2 percent of their income in FICA taxes - up to $113,700. Their employers match their payment. By law, Social Security cannot contribute to the federal deficit. Social Security has its own independent source of funding separate from the Treasury's general fund.

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